LINKBANCORP, Inc. Announces Record First Quarter 2025 Earnings and Declares Dividend
April 28, 2025 – HARRISBURG, PA – LINKBANCORP, Inc. (NASDAQ: LNKB) (the “Company”), the parent company of LINKBANK (the “Bank”), reported record net income of $15.3 million, or $0.41 per diluted share, for the quarter ended March 31, 2025, compared to net income of $7.6 million, or $0.20 per diluted share, for the quarter ended December 31, 2024. Excluding income and expenses associated with the sale of the Bank’s New Jersey operations and expenses related to the reduction of the size of the Board of Directors, adjusted earnings were $7.4 million1, or $0.201 per diluted share for the first quarter of 2025, compared with $7.6 million1, or $0.211 per diluted share for the fourth quarter of 2024.
Additionally, the Company announced that the Board of Directors declared a quarterly cash dividend of $0.075 per share of common stock which is expected to be paid on June 16, 2025 to shareholders of record on May 30, 2025.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
Page 2 of 20
First Quarter 2025 Highlights
•
Successful Branch Sale. On March 31, 2025, the Bank successfully completed the sale of its banking operations and branches in New Jersey, including related loans and deposits (the “Branch Sale”). The transaction involved the transfer of three branch locations, $87 million of deposits, and $105 million in loans. Under the terms of the purchase and assumption agreement, deposits were sold at a 7% premium and loans were sold at par, resulting in an after-tax gain, net of transaction costs, of $8.7 million.
•
Consistent strength in core earnings. Annualized return on average assets was 2.19% for the first quarter of 2025, compared to 1.06% for the fourth quarter of 2024 and 0.86% for the first quarter of 2024. Adjusted return on average assets was 1.05%1 for the first quarter of 2025, compared to 1.07%1 for the fourth quarter of 2024 and 0.86%1 for the first quarter of 2024.
•
Net interest margin expands to 3.94%. Net interest margin expanded to 3.94% for the first quarter of 2025 from 3.85% for the fourth quarter of 2024. Net interest margin was impacted by increased purchase accounting accretion, an increase in loan yields and a decrease in cost of funds.
•
Greater than 8% growth in tangible book value per share. The Company’s book value per share increased to $7.87 at March 31, 2025 from $7.50 at December 31, 2024. Tangible book value per share increased $0.44, or 8.2%, from $5.361 at December 31, 2024 to $5.801 at March 31, 2025. The Company’s ratio of Tangible Common Equity to Tangible Assets was 7.78%1 at March 31, 2025, compared to 7.16%1 at December 31, 2024 and 6.91%1 at March 31, 2024.
•
Significant increase in core deposits supports balance sheet growth. Total deposits at March 31, 2025 were $2.43 billion compared to $2.45 billion at December 31, 2024, representing an increase of $66.6 million, or 11.01% annualized after adjusting for the Branch Sale2. Total loans at March 31, 2025 were $2.27 billion, compared to $2.35 billion at December 31, 2024, representing an increase of $24.0 million or 4.10% after adjusting for the Branch Sale2.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 3 of 20
•
Continued strength in on-balance sheet liquidity. Cash and cash equivalents increased $54.1 million from $166.1 million at December 31, 2024 to $220.2 million at March 31, 2025, further bolstering the Company’s strong liquidity position.
“We are very pleased to present consistent core earnings in addition to the successful sale of our New Jersey operations,” said Andrew Samuel, Chief Executive Officer of LINKBANCORP. "Strong core deposit growth and the gain from the New Jersey sale has well positioned our teams to support our loan pipeline headed into the second quarter. Our strengthened liquidity and capital positions provide the foundation for continued growth, with an emphasis on creating long term shareholder value as we positively impact our local communities."
Income Statement
Net interest income before the provision for credit losses for the first quarter of 2025 was $25.8 million compared to $25.5 million in the fourth quarter of 2024 and $24.9 million for the first quarter of 2024. Net interest margin expanded to 3.94% for the first quarter of 2025 compared to 3.85% for the fourth quarter of 2024. The improvement in net interest margin was driven by a 5 basis points increase in average yield on interest earning assets from 6.09% for the fourth quarter of 2024 compared to 6.14% for the first quarter of 2025. This increase included an increase in purchase accounting accretion while core loan yields increased marginally quarter-over-quarter. In addition, the total cost of funds declined 3 basis points from 2.32% for the fourth quarter of 2024 to 2.29% for the first quarter of 2025, driven by a 5 basis points decrease in the average cost of deposits from 2.15% for the fourth quarter of 2024 to 2.10% for the first quarter of 2025, partially offset by an increase in wholesale funding costs.
Noninterest income increased quarter-over-quarter to $13.3 million for the first quarter of 2025 compared to $2.6 million for the fourth quarter of 2024 due to the $11.1 million pre-tax gain from the Branch Sale, offset by a decline in service charges on deposits mostly attributable to a decrease in account level fees and interchange revenue.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 4 of 20
Noninterest expense for the first quarter of 2025 was $19.7 million compared to $18.3 million for the fourth quarter of 2024 and $19.3 million for the first quarter of 2024. Excluding non-core operating costs totaling $912 thousand in the first quarter of 2025, $56 thousand in the fourth quarter of 2024 and $56 thousand in the first quarter of 2024, adjusted noninterest expense increased $541 thousand1 from $18.2 million1 for the fourth quarter of 2024 to $18.7 million1for the first quarter of 2025 while decreasing $407 thousand1 year-over-year from $19.2 million1 for the first quarter of 2024. Adjusted non-interest expense for the first quarter of 2025 excludes expenses related to the reduction of the size of the Board of Directors included in other noninterest expense, as well as bonus accruals related to completion of the Branch Sale included in salaries and employee benefits expense, and other merger and restructuring costs.
Income tax expense was $3.9 million for the first quarter of 2025, reflecting an effective tax rate of 20.1% compared to $2.1 million for the fourth quarter of 2024, reflecting an effective rate of 21.9% and $1.6 million for the first quarter of 2024, reflecting an effective tax rate of 21.8%, respectively. The tax rate decreased quarter-over-quarter due to a state income tax apportionment adjustment.
Balance Sheet
Total assets were $2.86 billion at March 31, 2025 compared to $2.88 billion at December 31, 2024 and $2.79 billion at March 31, 2024. Deposits and net loans as of March 31, 2025 totaled $2.43 billion and $2.25 billion, respectively, compared to deposits and net loans of $2.36 billion and $2.23 billion, respectively, at December 31, 2024 and $2.28 billion and $2.11 billion, respectively, at March 31, 2024. Deposits and net loans exclude recorded balances held for sale in the Branch Sale of $93.6 million and $91.8 million, respectively, at December 31, 2024, which are reflected in liabilities held for sale and assets held for sale. These balances were $105.6 million and $115.9 million respectively, at March 31, 2024.
Total loans at March 31, 2025 were $2.27 billion, compared to $2.35 billion at December 31, 2024, representing an increase of $24.0 million after adjusting for the Branch Sale2. Total commercial loan commitments originated in the first quarter of 2025 were $98.5 million with funded balances of $72.0 million. The average commercial loan commitment originated during
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 5 of 20
the first quarter of 2025 totaled approximately $788 thousand with an average outstanding funded balance of $576 thousand.
Total deposits at March 31, 2025 were $2.43 billion compared to $2.45 billion at December 31, 2024, representing an increase of $66.6 million after adjusting for the Branch Sale2. Average total deposits, including deposits held for sale, increased $5.3 million to $2.38 billion for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. Noninterest bearing deposits totaled $646.0 million at March 31, 2025, representing 26.5% of total deposits.
The Company continues to maintain strong on-balance sheet liquidity, as cash and cash equivalents increased 32.6% to $220.2 million at March 31, 2025 compared to $166.1 million at December 31, 2024.
Shareholders’ equity increased from $280.2 million at December 31, 2024 to $294.1 million at March 31, 2025 primarily as a result of a $12.6 million increase in retained earnings. Book value per share increased to $7.87 at March 31, 2025 compared to $7.50 at December 31, 2024. Tangible book value per share increased to $5.801 at March 31, 2025 compared to $5.361 at December 31, 2024 and $5.001at March 31, 2024, representing 16% growth year over year.
Asset Quality
The Company recorded a $228 thousand provision for credit losses during the first quarter of 2025, after recording a $132 thousand provision for credit losses in the fourth quarter of 2024.
As of March 31, 2025, the Company’s non-performing assets were $26.0 million, representing 0.91% of total assets, compared to $17.2 million, representing 0.60% of total assets at December 31, 2024.
Loans 30-89 days past due at March 31, 2025 were $12.7 million, representing 0.56% of total loans compared to $2.9 million or 0.13% of total loans at December 31, 2024 and $15.3 million or 0.68% of total loans at March 31, 2024.
The current increase in non-performing assets and delinquencies primarily relate to two properly margined first lien secured real estate loans with an aggregate principal balance of approximately $8.8 million at March 31, 2025.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 6 of 20
The allowance for credit losses-loans was $26.6 million, or 1.17% of total loans held for investment at March 31, 2025, compared to $26.4 million, or 1.17% of total loans held for investment at December 31, 2024. The allowance for credit losses-loans to nonperforming assets ratio was 102.22% at March 31, 2025, compared to 153.93% at December 31, 2024.
Capital
The Bank’s regulatory capital ratios were well in excess of regulatory minimums to be considered “well capitalized” as of March 31, 2025. The Bank’s Total Capital Ratio and Tier 1 Capital Ratio were 12.61% and 11.71% respectively, at March 31, 2025, compared to 11.55% and 10.74%, respectively, at December 31, 2024 and 11.04% and 10.24%, respectively, at March 31, 2024. The Company’s ratio of Tangible Common Equity to Tangible Assets was 7.78%1 at March 31, 2025 compared to 7.16%1 at December 31, 2024.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 7 of 20
ABOUT LINKBANCORP, Inc.
LINKBANCORP, Inc. was formed in 2018 with a mission to positively impact lives through community banking. Its subsidiary bank, LINKBANK, is a Pennsylvania state-chartered bank serving individuals, families, nonprofits and business clients throughout Pennsylvania, Maryland, Delaware and Virginia, through 24 client solutions centers and www.linkbank.com. LINKBANCORP, Inc. common stock is traded on the Nasdaq Capital Market under the symbol "LNKB". For further company information, visit ir.linkbancorp.com.
Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of current or historical fact and involve substantial risks and uncertainties. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions can be used to identify forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: costs or difficulties associated with newly developed or acquired operations; changes in general economic trends, including inflation, tariffs and changes in interest rates; increased competition; changes in consumer demand for financial services; our ability to control costs and expenses; adverse developments in borrower industries and, in particular, declines in real estate values; changes in and compliance with federal and state laws that regulate our business and capital levels; our ability to raise capital as needed; and the effects of any cybersecurity breaches. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.
1 See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP measure.
2 See Loan and Deposit Tables for Branch Sale Reconciliation
Page 8 of 20
LINKBANCORP, Inc. and Subsidiaries
Consolidated Balance Sheet (Unaudited)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
(In Thousands, except share and per share data)
ASSETS
Noninterest-bearing cash equivalents
$
14,830
$
13,834
$
15,295
$
14,516
$
13,552
Interest-bearing deposits with other institutions
205,352
152,266
175,937
167,141
158,731
Cash and cash equivalents
220,182
166,100
191,232
181,657
172,283
Securities available for sale, at fair value
159,183
145,590
149,315
140,121
133,949
Securities held to maturity, net of allowance for credit losses
27,662
31,508
34,155
35,343
36,109
Loans receivable, gross
2,273,941
2,255,749
2,215,868
2,193,197
2,129,919
Allowance for credit losses - loans
(26,619
)
(26,435
)
(26,542
)
(26,288
)
(23,842
)
Loans receivable, net
2,247,322
2,229,314
2,189,326
2,166,909
2,106,077
Investments in restricted bank stock
4,780
5,209
4,904
4,928
4,286
Premises and equipment, net
17,920
18,029
17,623
18,364
20,102
Right-of-Use Asset – premises
14,537
14,913
14,150
13,970
14,577
Bank-owned life insurance
52,507
52,079
51,646
49,616
49,230
Goodwill and other intangible assets
77,379
79,761
80,924
82,129
81,494
Deferred tax asset
18,636
18,866
21,662
22,024
22,717
Assets held for sale
—
94,146
104,660
118,362
118,115
Accrued interest receivable and other assets
23,288
23,263
20,344
25,170
26,730
TOTAL ASSETS
$
2,863,396
$
2,878,778
$
2,879,941
$
2,858,593
$
2,785,669
LIABILITIES
Deposits:
Demand, noninterest bearing
$
646,002
$
658,646
$
658,473
$
661,292
$
618,277
Interest bearing
1,787,692
1,701,936
1,714,179
1,699,220
1,662,124
Total deposits
2,433,694
2,360,582
2,372,652
2,360,512
2,280,401
Long-term borrowings
40,000
40,000
40,000
40,000
40,000
Short-term borrowings
—
10,000
—
—
—
Note payable
559
565
572
578
584
Subordinated debt
62,129
61,984
61,843
61,706
61,573
Lease liabilities
15,284
15,666
14,911
14,746
15,357
Liabilities held for sale
—
93,777
94,228
96,916
105,716
Accrued interest payable and other liabilities
17,664
15,983
18,382
12,726
13,795
TOTAL LIABILITIES
2,569,330
2,598,557
2,602,588
2,587,184
2,517,426
SHAREHOLDERS’ EQUITY
Preferred stock
—
—
—
—
—
Common stock
370
370
370
370
369
Surplus
264,871
264,449
264,059
263,795
263,577
Retained earnings
32,507
19,947
15,147
10,826
7,724
Accumulated other comprehensive loss
(3,682
)
(4,545
)
(2,223
)
(3,582
)
(3,427
)
TOTAL SHAREHOLDERS' EQUITY
294,066
280,221
277,353
271,409
268,243
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,863,396
$
2,878,778
$
2,879,941
$
2,858,593
$
2,785,669
Common shares outstanding
37,377,342
37,370,917
37,361,560
37,356,278
37,348,151
Page 9 of 20
LINKBANCORP, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
Three Months Ended
3/31/2025
12/31/2024
3/31/2024
(In Thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees
$
37,041
$
37,082
$
36,125
Other
3,101
3,224
2,650
Total interest and dividend income
40,142
40,306
38,775
INTEREST EXPENSE
Deposits
12,357
12,823
11,847
Other Borrowings
986
962
1,152
Subordinated Debt
968
976
892
Total interest expense
14,311
14,761
13,891
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
25,831
25,545
24,884
Provision for credit losses
228
132
40
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
25,603
25,413
24,844
NONINTEREST INCOME
Service charges on deposit accounts
1,061
1,339
780
Bank-owned life insurance
428
433
383
Gain on sale of loans
77
70
50
Gain on sale of branches
11,093
—
—
Other
598
752
516
Total noninterest income
13,257
2,594
1,729
NONINTEREST EXPENSE
Salaries and employee benefits
11,156
10,147
11,118
Occupancy
1,464
1,368
1,578
Equipment and data processing
2,043
1,884
1,826
Professional fees
487
531
748
FDIC insurance and supervisory fees
599
687
352
Bank Shares Tax
614
693
591
Intangible amortization
1,084
1,162
1,207
Merger & restructuring expenses
41
56
56
Advertising
144
128
234
Other
2,026
1,646
1,540
Total noninterest expense
19,658
18,302
19,250
Income before income tax expense
19,202
9,705
7,323
Income tax expense
3,859
2,121
1,597
NET INCOME
$
15,343
$
7,584
$
5,726
EARNINGS PER SHARE, BASIC
$
0.41
$
0.20
$
0.15
EARNINGS PER SHARE, DILUTED
$
0.41
$
0.20
$
0.15
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING,
BASIC
37,105,480
37,045,701
36,962,005
DILUTED
37,221,939
37,166,107
37,045,230
Page 10 of 20
LINKBANCORP, Inc. and Subsidiaries
Financial Highlights (Unaudited)
For the Three Months Ended
(Dollars In Thousands, except per share data)
3/31/2025
12/31/2024
3/31/2024
Operating Highlights
Net Income
$
15,343
$
7,584
$
5,726
Net Interest Income
25,831
25,545
24,884
Provision for Credit Losses
228
132
40
Non-Interest Income
13,257
2,594
1,729
Non-Interest Expense
19,658
18,302
19,250
Earnings per Share, Basic
0.41
0.20
0.15
Adjusted Earnings per Share, Basic (2)
0.20
0.21
0.16
Earnings per Share, Diluted
0.41
0.20
0.15
Adjusted Earnings per Share, Diluted (2)
0.20
0.21
0.16
Selected Operating Ratios
Net Interest Margin
3.94
%
3.85
%
4.03
%
Annualized Return on Assets ("ROA")
2.19
%
1.06
%
0.86
%
Adjusted ROA2
1.05
%
1.07
%
0.86
%
Annualized Return on Equity ("ROE")
21.90
%
10.82
%
8.63
%
Adjusted ROE2
10.56
%
10.88
%
8.70
%
Efficiency Ratio
50.29
%
65.04
%
72.33
%
Adjusted Efficiency Ratio3
66.96
%
64.84
%
72.12
%
Noninterest Income to Avg. Assets
1.89
%
0.36
%
0.26
%
Noninterest Expense to Avg. Assets
2.80
%
2.56
%
2.88
%
3/31/2025
12/31/2024
9/30/2024
6/30/2024
3/31/2024
Financial Condition Data
Total Assets
$
2,863,396
$
2,878,778
$
2,879,941
$
2,858,593
$
2,785,669
Loans Receivable, Net
2,247,322
2,229,314
2,189,326
2,166,909
2,106,077
Noninterest-bearing Deposits
646,002
658,646
658,473
661,292
618,277
Interest-bearing Deposits
1,787,692
1,701,936
1,714,179
1,699,220
1,662,124
Total Deposits
$
2,433,694
$
2,360,582
$
2,372,652
$
2,360,512
$
2,280,401
Selected Balance Sheet Ratios
Total Capital Ratio1
12.61
%
11.55
%
11.44
%
11.09
%
11.04
%
Tier 1 Capital Ratio1
11.71
%
10.74
%
10.62
%
10.30
%
10.24
%
Common Equity Tier 1 Capital Ratio1
11.71
%
10.74
%
10.62
%
10.30
%
10.24
%
Leverage Ratio1
10.02
%
9.49
%
9.41
%
9.17
%
9.23
%
Tangible Common Equity to Tangible Assets4
7.78
%
7.16
%
7.02
%
6.82
%
6.91
%
Tangible Book Value per Share5
$
5.80
$
5.36
$
5.26
$
5.07
$
5.00
Asset Quality Data
Non-performing Assets
$
26,041
$
17,173
$
17,378
$
10,589
$
6,675
Non-performing Assets to Total Assets
0.91
%
0.60
%
0.60
%
0.37
%
0.24
%
Non-performing Loans to Total Loans
1.15
%
0.76
%
0.78
%
0.48
%
0.31
%
Allowance for Credit Losses - Loans ("ACLL")
$
26,619
$
26,435
$
26,542
$
26,288
$
23,842
ACLL to Total Loans
1.17
%
1.17
%
1.20
%
1.20
%
1.06
%
ACLL to Nonperforming Assets
102.22
%
153.93
%
152.73
%
248.26
%
357.18
%
Net chargeoffs (recoveries)
$
81
$
252
$
(28
)
$
(20
)
$
70
(1) - These capital ratios have been calculated using bank-level capital
(2) - This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
Page 11 of 20
(3) - The efficiency ratio, as adjusted represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains or losses from securities sales and merger related expenses. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
(4) - We calculate tangible common equity as total shareholders' equity less goodwill and other intangibles, and we calculate tangible assets as total assets less goodwill and other intangibles. This is a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
(5) - We calculate tangible book value per common share as total shareholders' equity less goodwill and other intangibles, divided by the outstanding number of shares of our common stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures at the end of this release.
Page 12 of 20
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Quarter-To-Date (Unaudited)
For the Three Months Ended March 31,
2025
2024
(Dollars in thousands)
Avg Bal
Interest (2)
Yield/Rate
Avg Bal
Interest (2)
Yield/Rate
Int. Earn. Cash
$
119,269
$
972
3.31
%
$
82,420
$
898
4.38
%
Securities
Taxable (1)
142,867
1,749
4.96
%
114,896
1,391
4.87
%
Tax-Exempt
43,845
481
4.45
%
42,984
457
4.28
%
Total Securities
186,712
2,230
4.84
%
157,880
1,848
4.71
%
Total Cash Equiv. and Investments
305,981
3,202
4.24
%
240,300
2,746
4.60
%
Total Loans (3)
2,350,031
37,041
6.39
%
2,240,714
36,125
6.48
%
Total Earning Assets
2,656,012
40,243
6.14
%
2,481,014
38,871
6.30
%
Other Assets
191,469
210,826
Total Assets
$
2,847,481
$
2,691,840
Interest bearing demand
$
545,475
3,048
2.27
%
$
424,781
1,942
1.84
%
Money market demand
555,663
2,937
2.14
%
587,455
3,174
2.17
%
Time deposits
632,649
6,372
4.08
%
608,192
6,731
4.45
%
Total Borrowings
149,922
1,954
5.29
%
140,621
2,044
5.85
%
Total Interest-Bearing Liabilities
1,883,709
14,311
3.08
%
1,761,049
13,891
3.17
%
Non Interest-Bearing Deposits
649,440
632,637
Total Cost of Funds
2,533,149
14,311
2.29
%
2,393,686
13,891
2.33
%
Other Liabilities
30,229
31,359
Total Liabilities
2,563,378
2,425,045
Shareholders' Equity
284,104
266,795
Total Liabilities & Shareholders' Equity
$
2,847,482
$
2,691,840
Net Interest Income/Spread (FTE)
25,932
3.06
%
24,980
3.13
%
Tax-Equivalent Basis Adjustment
(101
)
(96
)
Net Interest Income
$
25,831
$
24,884
Net Interest Margin
3.94
%
4.03
%
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
Page 13 of 20
LINKBANCORP, Inc. and Subsidiaries
Net Interest Margin - Linked Quarter-To-Date (Unaudited)
For the Three Months Ended
March 31, 2025
December 31, 2024
(Dollars in thousands)
Avg Bal
Interest (2)
Yield/Rate
Avg Bal
Interest (2)
Yield/Rate
Int. Earn. Cash
$
119,269
$
972
3.31
%
$
128,802
$
1,300
4.02
%
Securities
Taxable (1)
142,867
1,749
4.96
%
138,168
1,540
4.43
%
Tax-Exempt
43,845
481
4.45
%
44,958
486
4.30
%
Total Securities
186,712
2,230
4.84
%
183,126
2,026
4.40
%
Total Cash Equiv. and Investments
305,981
3,202
4.24
%
311,928
3,326
4.24
%
Total Loans (3)
2,350,031
37,041
6.39
%
2,327,829
37,082
6.34
%
Total Earning Assets
2,656,012
40,243
6.14
%
2,639,757
40,408
6.09
%
Other Assets
191,469
202,693
Total Assets
$
2,847,481
$
2,842,450
Interest bearing demand
$
545,475
3,048
2.27
%
$
537,856
3,043
2.25
%
Money market demand
555,663
2,937
2.14
%
567,593
3,139
2.20
%
Time deposits
632,649
6,372
4.08
%
607,231
6,641
4.35
%
Total Borrowings
149,922
1,954
5.29
%
153,117
1,938
5.04
%
Total Interest-Bearing Liabilities
1,883,709
14,311
3.08
%
1,865,797
14,761
3.15
%
Non Interest-Bearing Deposits
649,440
665,276
Total Cost of Funds
2,533,149
14,311
2.29
%
2,531,073
14,761
2.32
%
Other Liabilities
30,229
32,493
Total Liabilities
2,563,378
2,563,566
Shareholders' Equity
284,104
278,884
Total Liabilities & Shareholders' Equity
$
2,847,482
$
2,842,450
Net Interest Income/Spread (FTE)
25,932
3.06
%
25,647
2.94
%
Tax-Equivalent Basis Adjustment
(101
)
(102
)
Net Interest Income
$
25,831
$
25,545
Net Interest Margin
3.94
%
3.85
%
(1) Taxable income on securities includes income from available for sale securities and income from certificates of deposits with other banks.
(2) Income stated on a tax equivalent basis which is a non-GAAP measure and reconciled to GAAP at the bottom of the table
(3) Includes the balances of nonaccrual loans
Page 14 of 20
LINKBANCORP, Inc. and Subsidiaries
Loans Receivable Detail (Unaudited)
(In Thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Agriculture and farmland loans
$
66,684
$
67,741
$
65,166
$
66,937
$
67,359
Construction loans
136,421
158,296
175,373
201,174
194,391
Commercial & industrial loans
257,302
252,163
241,597
247,190
218,724
Commercial real estate loans
Multifamily
215,916
217,331
212,444
199,740
190,146
Owner occupied
472,895
493,906
500,643
492,065
489,467
Non-owner occupied
645,793
658,615
626,030
610,649
589,731
Residential real estate loans
First liens
378,420
399,476
400,869
400,098
403,300
Second liens and lines of credit
79,905
78,410
73,591
71,168
71,060
Consumer and other loans
17,097
17,087
17,498
15,514
16,810
Municipal loans
3,012
3,886
4,296
4,362
4,473
2,273,445
2,346,911
2,317,507
2,308,897
2,245,461
Deferred costs
496
645
634
478
356
Total loans receivable
2,273,941
2,347,556
2,318,141
2,309,375
2,245,817
Less: Loans held for sale
—
91,807
102,273
116,178
115,898
Loans Held for Investment
$
2,273,941
$
2,255,749
$
2,215,868
$
2,193,197
$
2,129,919
LINKBANCORP, Inc. and Subsidiaries
Loan Growth Calculation Excluding Branch Sale (Unaudited)
(In Thousands)
March 31, 2025
Total Loans at March 31, 2025
$
2,273,941
Total Loans at December 31, 2024
2,347,556
Quarterly Change
(73,615
)
Net Book Value of Loans Sold
97,952
Quarterly Loan Growth Excluding Branch Sale
24,337
Annualized Growth Rate
4.20
%
Page 15 of 20
LINKBANCORP, Inc. and Subsidiaries
Investments in Securities Detail (Unaudited)
March 31, 2025
(In Thousands)
Amortized Cost
Net Unrealized Gains (Losses)
Fair Value
Available for Sale:
US Government Agency securities
$
13,097
$
176
$
13,273
Obligations of state and political subdivisions
51,221
(3,756
)
47,465
Mortgage-backed securities in government-sponsored entities
99,909
(1,864
)
98,045
Other securities
408
(8
)
400
$
164,635
$
(5,452
)
$
159,183
Amortized Cost
Net Unrealized Losses
Fair Value
Allowance for Credit Losses
Held to Maturity:
Corporate debentures
$
12,250
$
(828
)
$
11,422
$
(421
)
Structured mortgage-backed securities
15,833
(491
)
15,342
-
$
28,083
$
(1,319
)
$
26,764
$
(421
)
December 31, 2024
(In Thousands)
Amortized Cost
Net Unrealized Gains (Losses)
Fair Value
Available for Sale:
US Government Agency securities
$
13,017
$
56
$
13,073
Obligations of state and political subdivisions
51,254
(4,053
)
47,201
Mortgage-backed securities in government-sponsored entities
88,289
(3,506
)
84,783
Other securities
542
(9
)
533
$
153,102
$
(7,512
)
$
145,590
Amortized Cost
Net Unrealized Losses
Fair Value
Allowance for Credit Losses
Held to Maturity:
Corporate debentures
$
15,250
$
(984
)
$
14,266
$
(459
)
Structured mortgage-backed securities
16,717
(699
)
16,018
-
$
31,967
$
(1,683
)
$
30,284
$
(459
)
Page 16 of 20
LINKBANCORP, Inc. and Subsidiaries
Deposits Detail (Unaudited)
(In Thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Demand, noninterest-bearing
$
646,002
$
686,510
$
687,536
$
692,095
$
653,719
Demand, interest-bearing
577,170
537,546
547,099
488,043
447,412
Money market and savings
553,240
553,807
585,395
582,561
591,982
Time deposits, $250 and over
166,441
167,165
169,616
156,621
147,898
Time deposits, other
387,226
405,493
401,976
393,603
398,365
Brokered deposits
103,615
103,615
75,000
144,429
146,653
2,433,694
2,454,136
2,466,622
2,457,352
2,386,029
Less: Deposits held for sale
—
93,554
93,970
96,840
105,628
Total deposits
$
2,433,694
$
2,360,582
$
2,372,652
$
2,360,512
$
2,280,401
Average Deposits Detail, for the Three Months Ended (Unaudited)
(In Thousands)
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
Demand, noninterest-bearing
$
649,440
$
665,276
$
659,825
$
657,939
$
632,637
Demand, interest-bearing
545,475
537,856
497,100
446,109
424,781
Money market and savings
555,663
567,593
580,766
581,223
587,455
Time deposits
576,366
568,615
560,815
547,582
518,929
Brokered deposits
56,283
38,616
52,587
95,337
89,263
Total deposits
$
2,383,227
$
2,377,956
$
2,351,093
$
2,328,190
$
2,253,065
Balances in table above include deposits held for sale
LINKBANCORP, Inc. and Subsidiaries
Deposit Growth Calculation Excluding Branch Sale (Unaudited)
(In Thousands)
March 31, 2025
Total Deposits at March 31, 2025
$
2,433,694
Total Deposits at December 31, 2024
2,454,136
Quarterly Change
(20,442
)
Net Book Value of Deposits Sold
87,086
Quarterly Deposit Growth Excluding Branch Sale
66,644
Annualized Growth Rate
11.01
%
Page 17 of 20
Appendix A – Reconciliation to Non-GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these non-GAAP measures in its analysis of the Company’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of non-GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company’s financial condition and results. Non-GAAP measures are not formally defined under GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to GAAP financial measures, our management believes these non-GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-GAAP measures. See the tables below for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.
Page 18 of 20
Adjusted Return on Average Assets
For the Three Months Ended
(Dollars in thousands)
3/31/2025
12/31/2024
3/31/2024
Net income
$
15,343
$
7,584
$
5,726
Average assets
2,847,481
2,842,450
2,691,840
Return on average assets (annualized)
2.19
%
1.06
%
0.86
%
Net income
$
15,343
$
7,584
$
5,726
Gain on sale of branches
(11,093
)
—
—
Tax effect(1)
2,440
—
—
Transaction bonus accrual
490
—
—
Tax effect(1)
(108
)
—
—
Board restructuring accrual
381
—
—
Tax effect(1)
(84
)
—
—
Merger & restructuring expenses
41
56
56
Tax effect(1)
(9
)
(12
)
(12
)
Adjusted Net Income (Non-GAAP)
$
7,401
$
7,628
$
5,770
Average assets
$
2,847,481
$
2,842,450
$
2,691,840
Adjusted return on average assets (annualized) (Non-GAAP)
1.05
%
1.07
%
0.86
%
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods
Adjusted Return on Average Shareholders' Equity
For the Three Months Ended
(Dollars in thousands)
3/31/2025
12/31/2024
3/31/2024
Net income
$
15,343
$
7,584
$
5,726
Average shareholders' equity
284,104
278,884
266,795
Return on average shareholders' equity (annualized)
21.90
%
10.82
%
8.63
%
Net income
$
15,343
$
7,584
$
5,726
Gain on sale of branches
(11,093
)
—
—
Tax effect(1)
2,440
—
—
Transaction bonus accrual
490
—
—
Tax effect(1)
(108
)
—
—
Board restructuring accrual
381
—
—
Tax effect(1)
(84
)
—
—
Merger & restructuring expenses
41
56
56
Tax effect(1)
(9
)
(12
)
(12
)
Adjusted Net Income (Non-GAAP)
$
7,401
$
7,628
$
5,770
Average shareholders' equity
$
284,104
$
278,884
$
266,795
Adjusted return on average shareholders' equity (annualized) (Non-GAAP)
10.56
%
10.88
%
8.70
%
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods
Page 19 of 20
Adjusted Efficiency Ratio
For the Three Months Ended
(Dollars in thousands)
3/31/2025
12/31/2024
3/31/2024
GAAP-based efficiency ratio
50.29
%
65.04
%
72.33
%
Net interest income
$
25,831
$
25,545
$
24,884
Noninterest income
13,257
2,594
1,729
Less: Gain on sale of branches
(11,093
)
-
-
Adjusted revenue (Non-GAAP)
27,995
28,139
26,613
Total noninterest expense
19,658
18,302
19,250
Less: Merger & restructuring expenses
41
56
56
Less: Transaction bonus accrual
490
-
-
Less: Board restructuring accrual
381
-
-
Adjusted non-interest expense
$
18,746
$
18,246
$
19,194
Efficiency ratio, as adjusted (Non-GAAP)
66.96
%
64.84
%
72.12
%
Adjusted Earnings Per Share
For the Three Months Ended
(Dollars in thousands, except per share data)
3/31/2025
12/31/2024
3/31/2024
GAAP-Based Earnings Per Share, Basic
$
0.41
$
0.20
$
0.15
GAAP-Based Earnings Per Share, Diluted
$
0.41
$
0.20
$
0.15
Net Income
$
15,343
$
7,584
$
5,726
Gain on sale of branches
(11,093
)
—
—
Tax effect(1)
2,440
—
—
Transaction bonus accrual
490
—
—
Tax effect(1)
(108
)
—
—
Board restructuring accrual
381
—
—
Tax effect(1)
(84
)
—
—
Merger & restructuring expenses
41
56
56
Tax effect(1)
(9
)
(12
)
(12
)
Adjusted Net Income (Non-GAAP)
$
7,401
$
7,628
$
5,770
Adjusted Earnings per Share, Basic (Non-GAAP)
$
0.20
$
0.21
$
0.16
Adjusted Earnings per Share, Diluted (Non-GAAP)
$
0.20
$
0.21
$
0.16
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods
Page 20 of 20
Tangible Common Equity and Tangible Book Value
(Dollars in thousands, except per share data)
3/31/2025
12/31/2024
9/30/2024
6/30/2024
3/31/2024
Tangible Common Equity
Total shareholders’ equity
$
294,066
$
280,221
$
277,353
$
271,409
$
268,243
Adjustments:
Goodwill
(58,806
)
(58,806
)
(58,806
)
(58,806
)
(56,968
)
Other intangible assets
(18,573
)
(20,955
)
(22,118
)
(23,323
)
(24,526
)
Tangible common equity (Non-GAAP)
$
216,687
$
200,460
$
196,429
$
189,280
$
186,749
Common shares outstanding
37,377,342
37,370,917
37,361,560
37,356,278
37,348,151
Book value per common share
$
7.87
$
7.50
$
7.42
$
7.27
$
7.18
Tangible book value per common share (Non-GAAP)
$
5.80
$
5.36
$
5.26
$
5.07
$
5.00
Tangible Assets
Total assets
$
2,863,396
$
2,878,778
$
2,879,941
$
2,858,593
$
2,785,669
Adjustments:
Goodwill
(58,806
)
(58,806
)
(58,806
)
(58,806
)
(56,968
)
Other intangible assets
(18,573
)
(20,955
)
(22,118
)
(23,323
)
(24,526
)
Tangible assets (Non-GAAP)
$
2,786,017
$
2,799,017
$
2,799,017
$
2,776,464
$
2,704,175
Tangible common equity to tangible assets (Non-GAAP)
7.78
%
7.16
%
7.02
%
6.82
%
6.91
%
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
For the Three Months Ended
(Dollars in thousands, except per share data)
3/31/2025
12/31/2024
3/31/2024
Net Income (GAAP)
$
15,343
$
7,584
$
5,726
Gain on sale of branches
(11,093
)
—
—
Tax effect(1)
2,440
—
—
Transaction bonus accrual
490
—
—
Tax effect(1)
(108
)
—
—
Board restructuring accrual
381
—
—
Tax effect(1)
(84
)
—
—
Merger & restructuring expenses
41
56
56
Tax effect(1)
(9
)
(12
)
(12
)
Adjusted Net Income (Non-GAAP)
7,401
7,628
5,770
Income tax expense
3,859
2,121
1,597
Provision for credit losses
228
132
40
Tax effect included in Adjusted Net Income
(2,239
)
12
12
Adjusted Pre-tax, Pre-provision Net Income (Non-GAAP)
$
9,249
$
9,893
$
7,419
(1) Tax effect was 22% for the three months ended March 31, 2025 and 21% for prior periods
